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Mar 1, 2022

SEC Reporting Changes: Accelerated Settlement Cycles

In 2017, the Securities and Exchange Commission (SEC), made a change for security settlements. The SEC adopted an amendment to the settlement cycle rule, Rule 15c6-1(a) under the Securities Exchange Act of 1934, to shorten the standard settlement cycle for most broker-dealer transactions from three business days after the trade date (T+3) to two business days after the trade date (T+2) standard. On September 5, 2017, that change became effective. 

Oct 25, 2021

Launching an ETF? Thinking out loud on ETF Distribution Challenges

With the passage of the Securities Exchange Commission’s (SEC) Rule 6c-11 and the approval of various models for semi and non-transparent exchange traded funds (ETFs), everyone wants a piece of the ETF action. As an ETF distributor, we get asked many questions about how our policies and procedures work, what our fees are, how long it takes, etc. As a medallion distributor of ETFs, our role is more of a regulatory oversight role, which perhaps causes confusion. The distributor works primarily with the trust, the transfer agent/custodian and the authorized participant. 

May 21, 2021

ETFs: a case for “look-through” data in risk management and beyond

For more than 25 years, exchange-traded funds (ETFs) have transformed the global investment landscape. Born out of US equity market efficiency assumptions and computer advancements, these low-cost investment vehicles are found today in many institutional portfolios. Investors use ETF products well beyond original US equity bounds. These liquid beta instruments seek to replicate performances of international equity indices, commodity indicators and selected fixed-income universes. Considering the continuous growth in assets allocated to ETFs—ESG-tilted ones in particular—this blog looks at some analytics consequences on institutional investors’ asset allocation and risk management processes.

Apr 19, 2021

A-tisket, a-tasket, a custom ETF basket—passive, active & semi-transparent

In September 2019, the Securities and Exchange Commission (SEC) approved Rule 6c-11 under the 1940 Act, which will allow most exchange-traded funds (ETFs) to operate without the expense and delay of obtaining an exemptive order. The new rule provides greater flexibility to all issuers looking to launch new products filed as open-end funds in a streamlined approval process with a quicker time to come to the market. The new rule applies to both index-based and actively managed transparent ETFs. This rule cannot be applied to leveraged/inverse ETFs, unit investment trusts, master-feeder funds or share class ETFs.  

Dec 30, 2020

Top blog posts of 2020: The year in review

2020 has been memorable, to say the least. As we reflect on all we have learned over the past 12 months, we invite you to read some of our most popular blog entries, presented here in chronological order.

Jul 13, 2020

Evolving & ever-changing ETFs – an AP’s perspective: the in-flows and out-flows of ETFs with Dave Nadig

Despite COVID-19 and unrest around the globe, this year has finally seen semi-transparent active ETF launches from American Century’s ActiveShares to Fidelity’s Active ETFs. Although there is uncertainty of what each day, week or month will look like in the new normal, one thing is for sure, the interest for gaining more knowledge about semi-transparent active ETFs is growing. Following the SS&C ALPS webinar on the subject, we sat down with ETF Trends’, Director of Research, Dave Nadig, to get an authorized participants’ (AP) perspective around the flows for these new models.

Jul 7, 2020

Evolving & ever-changing ETFs—considerations from an asset manager’s point of view

Asset managers are fortunate to have a number of fund structures to choose from to launch their various strategies, either within active or passive constructs. As ETFs have gained in popularity with investors for their low cost, tax-efficient, transparent and tradeable structures, asset managers have increasingly concentrated on the ETF wrapper for their new product launches. While the basic blocking and tackling of ETF management is very similar to other fund structures, managing a product that simultaneously trades on a listed exchange presents many new challenges for asset managers that may require additional expertise.

Apr 9, 2020

Shielded Alpha℠: One-on-One with Blue Tractor Group

Simon Goulet and Terence Norman, co-founders of Blue Tractor Group, recently discussed with SS&C ALPS the challenges and opportunities of the Shielded Alpha℠ ETF wrapper. Blue Tractor’s Shield Alpha℠ was one of four semi-transparent models approved by the SEC late in 2019.

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